Columbia Threadneedle Investments, an investment management company released its “Columbia Threadneedle Global Technology Growth Strategy” third quarter 2024 investor letter. A copy of the letter can be downloaded here. Equity markets rose once again, marking the fourth consecutive quarter of positive returns for stocks as the Federal Reserve lowered interest rates for the first time since the start of the pandemic, with a much anticipated 0.5% (50 basis point) cut marking a shift to a more balanced policy. In the quarter, the fund returned -0.94% compared to the S&P Global 1200 Information Technology Index-net’s 0.72% return. Security selection drove the fund’s performance relative to the benchmark. In addition, you can check the fund’s top 5 holdings for its best picks for 2024.
Columbia Threadneedle Global Technology Growth Strategy highlighted stocks like Applied Materials, Inc. (NASDAQ:AMAT), in the third quarter 2024 investor letter. Applied Materials, Inc. (NASDAQ:AMAT) offers manufacturing equipment, services, and software to the semiconductor, display, and related industries. The one-month return of Applied Materials, Inc. (NASDAQ:AMAT) was -8.19%, and its shares gained 17.89% of their value over the last 52 weeks. On November 25, 2024, Applied Materials, Inc. (NASDAQ:AMAT) stock closed at $174.55 per share with a market capitalization of $143.9 billion.
Columbia Threadneedle Global Technology Growth Strategy stated the following regarding Applied Materials, Inc. (NASDAQ:AMAT) in its Q3 2024 investor letter:
“A cohort of the world’s leading semiconductor capital equipment companies, including Lam Research (LRCX), ASML Holding NV (ASML) and Applied Materials, Inc. (NASDAQ:AMAT) underperformed, with shares for each declining during the quarter, as market chatter hinted at the prospect of further export bans of capital equipment to China. The imposition of stricter export restrictions to China could weigh on customer end demand but does underscore that access to leading edge semiconductor technology is critical to national security for the U.S. as well as China. Investors are focused on the outcome of the U.S. presidential election as an imminent catalyst that could provide clarity to the operating environment.”
A technician in a clean room assembling a semiconductor chip using a microscope.
Applied Materials, Inc. (NASDAQ:AMAT) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 74 hedge fund portfolios held Applied Materials, Inc. (NASDAQ:AMAT) at the end of the third quarter which was 77 in the previous quarter. In the fiscal year 2024, Applied Materials, Inc.’s (NASDAQ:AMAT) net sales were $27.2 billion, up 2.5% on a year-over-year basis. While we acknowledge the potential of Applied Materials, Inc. (NASDAQ:AMAT) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
In another article, we discussed Applied Materials, Inc. (NASDAQ:AMAT) and shared the list of AI news stories shaking up Wall Street. In addition, please check out our hedge fund investor letters Q3 2024 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.